As cryptocurrencies like Bitcoin and Ether soar in popularity, the Federal Bureau of Investigation (FBI) warns that scams are also on the rise. The FBI said on Monday, Sept. 9, that Americans lost more than $5.6 billion due to cryptocurrency scams in 2023, a 45% increase from the year before.
The agency said that the “decentralized” nature of crypto and the ability to quickly transfer the funds to foreign accounts makes it a common avenue for criminals.
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The FBI warned that thieves will often disguise themselves through online dating profiles or social media. The agency said the scammers will develop a relationship with the victim before leading them to fake websites to steal their money. Scammers often start out requesting small amounts of money to make the transaction seem legitimate.
In some cases, the FBI said that fake businesses target victims by promising to help them recover the money they lost to cryptocurrency scams. The FBI cautioned Americans to be careful when investing their money, especially when they have never met the individual they are negotiating with face-to-face.
Cryptocurrency transactions are reportedly tracked on public block chains. However, law enforcement agencies said scammers quickly transfer money overseas, creating legal barriers for U.S. authorities to recoup stolen funds for victims.
